The ADA is thankful for the new tax-deductible provider relief bills. The new bills will help ensure health care workers won’t face any tax on provider relief funding obtained during the coronavirus pandemic.

In a letter dated August 20, ADA Executive Director Kathleen T. O’Loughlin, and President Chad P. Gehani thanked Sen Marsha Blackburn, R-Tenn., for removing the Provider Relief Fund Tax Penalties Act of 2020 and introducing S 4525.

“One thing we know is that the bill clearly states that Provider Relief Funds are not taxable. In addition, it states that expenses attributable to PRF are tax-deductible. From what we can see, this relief bill is important in reducing tax load on health care providers, that could hinder their chances of practicing in the wake of the coronavirus pandemic,” the letter mentioned.

The ADA added that the closure and partial opening of their practices as emergency-only dental care at the start of COVID-19 had given them a chance to make effective adjustments. After navigating the uncertainty at the onset of the pandemic, dentists all over the country have started opening their practices and implementing new safety procedures such as enhanced PPE and lots more.

“As you know, the costs of carrying out these safety practices are having a seismic effect on businesses. The arrival of this bill would safeguard dentists from paying taxes on aid provided through PRF. By ensuring relief funds are not part of the provider’s taxes, dental practices can make use of the entire value of the benefit. In addition, any form of a reduction in the tax load of dentists would go a long way in helping such practices keep their doors open, while providing first-class services, and retaining their best employees,” the letter concluded.

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The ADA also entered into a coalition with other health care providers to offer a show of thanks to Sen. Blackburn for introducing the bill to help health care providers during the coronavirus pandemic.

In a joint letter, the coalition said, “Health care providers continuously face various challenges on a daily basis, but the introduction of these bills would help ease our burden, and provide key relief on our nation’s health care system. Providing all health care professionals the chance to use the Public Health and Social Services Emergency Fund assistance is an incredible goal, and one we support as a coalition.”

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